You can change resolution with Morrowind Graphics Extender (MGE).
I'd also recommend getting Morrowind FPS Optimizer to change FOV, because in widescreen you will get "tunnel vision".
PS: My recommended FOV - 90.
Thanks for the response, but I'm already using both MGE and the Morrowind FPS optimizer.
I have my resolution set to 1920x1080 in MGE, but that is one of the resolutions that within MGE has a triangle next to it which means it may not work properly (distort the image). Is there some other setting within MGE that you know of that I can tweak to fix this.
And in the Morrowind FPS Optimizer I have the field of view set to 106.26, which by calculations should be the optimal FOV for 16:9 (1920x1080).
There is just still this slight fish eye effect that is really annoying... Also, on a side note, does anyone know any good lighting or water mods for Morrowind? I would like a good god ray lighting mod, and a water mod with more realistic water reflections, because as of now the ones I'm using in MGE literally just makes the water just like an upside down mirror. Looks really unrealistic.